A couple of weeks ago, during the New York Fashion Week, seeing glamorous models at the Lincoln Center Plaza brought to mind the beauty of models. Unfortunately, the conversation at a meeting soon after actually highlighted the ugliness of models.

At that meeting, frustrations were evident that regulators are always complaining that, despite the beauty of their sophistication, bank models underestimate the capital regulators believe is needed to support risk at financial institutions, and thus can lead to ugliness in times of financial crises similar to the crash of 2008.